don’t let your money disappear!. anyone longstanding all levels no prior history
TRANSCRIPT
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- Dont Let Your Money Disappear!
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- ANYONE Longstanding All levels No prior history
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- 87% who commit fraud have never been charged before
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- Frauds last 18 months before they are detected
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- Average loss $60K from employees, $180K from management
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- Tip offs in 81% of cases Financial stress Control freak Too close to vendors Living beyond means
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- Small organizations = more frauds for more money
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- The longer theyve worked The larger the fraud
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- Audits find only 3% of the fraud
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- INCENTIVE OPPORTUNIT Y RATIONALIZATION
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- Medical Spouse unemployment Gambling Debt
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- Just borrowing They owe me Theyll never miss it
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- No one watching Too much control Cash Management override
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- YOU CONTROL THE OPPORTUNITIES
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- MANAGEMENT must create the control environment Auditors simply evaluate
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- Rules apply to all Dont belittle procedures No management overrides Discipline
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- Tipline Employees and the public Training
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- InitiateApproveComplete SEGREGATION OF DUTIES
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- BARRIERS Small staff Signature stamp, on-behalf approvals SOLUTIONS Involve other employees, may not be finance staff Approver must sign
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- Require receipts Involve multiple people Reduce cash when possible
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- Dont pre-sign Dont use stamps Independent review Void check procedure
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- W-9 Already in system? No phone = red flag Verify the business
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- Original invoice/receipt Analytics ex: fuel Credit card controls
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- Best Practices Website Your Questions